Question: Question #11 See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $20 million in 2019. Expenses other than

Question #11

See the explanation below to work the problem.

XYZ Company, a 'for-profit' business, had revenues of $20 million in 2019. Expenses other than depreciation totaled 70 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash.

Depreciation originally was $3 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE.

Based on this change in depreciation expense, what would XYZ's cash flow now be?

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